Blossom Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2025 are as follows. Employee Future Years of Service Daniel 3 Mark 4 Nancy 5 Kenneth 6 Betty 6

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
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Blossom Company has five employees participating in its defined benefit pension plan. Expected years of future service for these
employees at the beginning of 2025 are as follows.
Employee Future Years of Service
Daniel
3
Mark
4
Nancy
5
Kenneth
Betty
6
6
On January 1, 2025, the company amended its pension plan, increasing its projected benefit obligation by $80,640.
Compute the amount of prior service cost amortization for the years 2025 through 2030 using the years-of-service method, setting up
appropriate schedules.
Year
Annual Amortization
2025
$
2026
2027
2028
2029
2025
Transcribed Image Text:Blossom Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2025 are as follows. Employee Future Years of Service Daniel 3 Mark 4 Nancy 5 Kenneth Betty 6 6 On January 1, 2025, the company amended its pension plan, increasing its projected benefit obligation by $80,640. Compute the amount of prior service cost amortization for the years 2025 through 2030 using the years-of-service method, setting up appropriate schedules. Year Annual Amortization 2025 $ 2026 2027 2028 2029 2025
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